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Requirements of the Brownfields Financial Tax Incentive Program

Part A - Program Criteria

Municipalities apply to the Ministry of Municipal Affairs (MMA) on behalf of a brownfields property owner for this program.

A property owner interested in Brownfields Financial Tax Incentive Program (BFTIP) should contact the local municipality or official.

If the municipality is participating in BFTIP, for the purposes of the program it will request certain information and an authorization from the property owner. The information, and the authorization, will be forwarded to MMA or other ministries.

Parts B and C below list the information required for the purposes of approval of BFTIP assistance by the province.

Please note this includes:

the information required by 365.1(5) of the Act (see explanatory note 3 below), and

the additional information required for BFTIP purposes.

Applications by municipalities should include, as an appendix, all the documents and information listed in Part B and C.

Municipalities must provide certain information to the Minister of Finance (FIN), before passing any tax assistance by-law under subsection 365.1(2) of the Municipal Act, 2001.

See subsection 365.1(5) of that Act.

However, please note:

a municipality can provide the above information by including it with this application. There is no need for the municipality to send the information separately to the FIN.

municipalities do not have to seek BFTIP assistance from the province when they provide the information required by 365.1(5). Nonetheless, for the purposes of this application, it is assumed that the proposed by-law will include provisions for provincial tax assistance.

If a municipality passes a tax assistance by-law, it must within 30 days give a copy of the by-law to the FIN as well as the MMA under subsection 365.1(7) of the Act.

However, please note in connection with subsection 365.1(7), a municipality can give the by-law copy to the MMA There is no need for the municipality to provide a copy separately to the FIN.

MMA regional staff will review BFTIP applications completed by the municipality, once received. Staff may contact municipalities if further information is needed in connection with an application.

Local governments are responsible for their decisions and actions. Legal requirements not mentioned in this application may apply to the provision of BFTIP or a by-law made under section 365.1 of the Municipal Act, 2001. Municipalities are encouraged to obtain their own legal advice in developing or passing any by-law, including a by-law under section 365.1 of the Act, or where otherwise needed for the purposes of this program.

In this form:

the “Act” refers to the Municipal Act, 2001,

“Community Improvement Plan” or “CIP” refers to a community improvement plan adopted by a municipality in accordance with section 28 of the Planning Act, and

“matching education property tax assistance” means cancellation or deferral that applies to all or a portion of the taxes for school purposes levied on a property under a by-law made under subsection 365.1(2) of the Municipal Act, 2001 because the by-law has been approved by the FIN under subsection 365.1(6) of that Act;

Instruction

Program information

The proposed municipal tax assistance by-law would outline the details of the municipal property tax assistance proposed to be offered to brownfield property owner(s) over a given time period.

For BFTIP approval purposes, it will make no difference if multiple properties are referenced under a single by-law, provided there is clear reference to the level of tax assistance to be offered for each property listed.

To help avoid time delays and possible revisions, municipalities may wish to consult with their local Municipal Services Office before taking a proposed by-law to Council.

Resolution, if any, passed by the upper-tier municipality under subsection 365.1(4.1) of the Act

Required by paragraph 2 of subsection 365.1(5) of the Act

Instruction

Please attach a copy of the relevant resolution, if any, passed by the upper-tier municipality under subsection 365.1(4.1) of the Act.

Program information

The program requires information about the participation of the upper-tier municipality, through its cancellation of upper-tier taxes, where applicable.

An estimate of how much the tax assistance to be provided by the proposed 365.1(2) by-law will cost the local municipality

Required by paragraph 3 of subsection 365.1(5) of the Act

Instruction

Please attach a copy of the above estimate.

Program information

The program requires an estimate of the cost of the proposed tax assistance to the municipality.

The tax rates currently applicable to the eligible property and its assessment and property class

Required by paragraph 4 of subsection 365.1(5) of the Act

Instruction

Please include the above information with the application.

Program information

The program requires the above tax rate and assessment and property class information in relation to the eligible property.

The taxes currently levied on the eligible property for municipal purposes and for school purposes

Required by paragraph 5 of subsection 365.1(5) of the Act

Instruction

Please include the above information with the application.

Program information

The program requires the above information about current municipal and school taxes levied on the eligible property.

Information confirming that the property is “eligible property” within the meaning of section 365.1 of the Act

Instruction

Program information

The program requires information to confirm the property is “eligible property” as defined in subsection 365.1(1) of the Act.

The information required for the purposes of the program is:

identifying information for the property, and

confirmation that

a phase two environmental site assessment has been conducted for the property;

a record of site condition (RSC) cannot be filed for the property, because it does not meet certain Environmental Protection Act standards (the standards listed in clause (b) of the definition of “eligible property” found in subsection 365.1(1) of the Municipal Act, 2001); (In other words, it has been determined that remediation to meet Environmental Protection Act standards is required, before a RSC can be filed for the property on the Brownfields Environmental Site Registry.)

the property is included in a community improvement project area for which a Community Improvement Plan, with tax assistance provisions contained in the plan, is in effect.

All conditions imposed by the municipality under subsection 365.1 (2) of the Act in respect of the property and confirmation of which of the conditions, if any, have been satisfied

Instruction

Please include the above information with the application.

Program information

For program purposes, identify any conditions required by or under the proposed or existing 365.1(2) tax assistance by-law, and confirm if any of them have been satisfied on or before the date of the application.

A copy of any agreements or proposed agreements between the municipality and the owner of the property and any undertakings or proposed undertakings by the owner of the property that are part of the arrangements relating to the tax assistance

Instruction

Please include the above information with the application.

Program information

The program requires information about the remediation process (e.g. a brief description of the proposed remediation activities and technologies to be used to remediate the property). Municipalities may consider requesting this information from the property owner.

The estimated cost of the remediation, including pre-remediation studies

Instruction

Program information

The program requires a time estimate for remediation completion. Municipalities may consider requesting this information from the property owner.

Part C – Other Program Requirements

Community Improvement Plan and Adopting By-law

Instruction

Please include with the application a copy of the relevant CIP and the by-law adopting it.

Requirements

For program purposes, the by-law adopting the CIP must contain a reference to the effect that:

section 365.1 of the Municipal Act, 2001 enables municipalities to provide municipal property tax assistance in connection with a community improvement plan, and FIN approval is required before matching education property tax assistance will be provided.

The above reference may be placed in the preamble to the by-law.

Also for program purposes, the CIP itself must contain:

provision for tax assistance under section 365.1 of the Municipal Act, 2001; and

acknowledgement that under the BFTIP, the timing of and conditions that apply to municipal property tax assistance may vary from those for matching education property tax assistance.